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Tricorn Preliminary Results For year ended 31st March 2012

Tricorn Preliminary Results For year ended 31st March 2012. June 2012 Mike Welburn, Chief Executive Officer Phil Lee, Group Finance Director David Leakey, Group Sales Director. Agenda. Introduction to Tricorn Results Overview Financial Review Delivering Competitive Advantage

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Tricorn Preliminary Results For year ended 31st March 2012

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  1. Tricorn Preliminary ResultsFor year ended 31st March 2012 June 2012 Mike Welburn, Chief Executive Officer Phil Lee, Group Finance Director David Leakey, Group Sales Director

  2. Agenda • Introduction to Tricorn • Results Overview • Financial Review • Delivering Competitive Advantage • Business Performance • China Expansion • Outlook

  3. Introduction • Supply major global blue chip OEMs with bespoke tubular systems • Around 2/3 of product ultimately destined for overseas • Operate in niche markets with low batch sizes and high variety • High proportion of recurring revenue • Focus on creating value • Develop collaborative relationships • Operational excellence • Low cost sourcing • Deliver competitive advantage

  4. Introduction Tubular components and assemblies for diesel engines, generator sets and radiator manufacture Worldwide patented technology for joining multi layer and polyethylene pipe systems Manipulated tube and pipe assemblies in ferrous, non-ferrous and nylon Off Highway and niche automotive manufacturers Rigid pipes and assemblies for aero engines Worldwide aviation market Power generation, mining oil & gas Water and gas utilities 4

  5. Results Overview • 14% growth in revenue • Aligned with global blue chip OEMs • Strong demand in all divisions • Well positioned to capitalise on South-East Asia markets • 48% improvement in operating profit • Operating margins up 1.7% to 7.2% • Aerospace performance significantly improved • 47% increase in adjusted EPS • Balance sheet continues to strengthen • Net cash • Lowered inventories • Cash and cash equivalents • Proposed full year dividend doubled

  6. Financial Review

  7. Financial Review- Overview * - Before intangible asset amortisation, share based payment charges, interest rate swap and foreign exchange derivative valuation.

  8. Financial Review - Headlines * - Before intangible asset amortisation, share based payment charges, interest rate swap and foreign exchange derivative valuation.

  9. Financial Review • Continued strengthening of the Group’s financial position…… • Improved operating margins • Group now in a strong net cash position - £586k • Increase in cash & equivalents to £2.5m • Term loan of £250k repaid early • Significant headroom on short term facilities • Further reduction in inventory levels • ….to invest for future growth • China manufacturing facility on plan to be operational by the end of 2012 • Capital investment in existing facilities to increase capacity and deliver further operational improvements • ….and provide a return to Shareholders • Doubling of full year dividend to 0.2p * - Before intangible asset amortisation, share based payment charges, interest rate swap and foreign exchange derivative valuation.

  10. Delivering Competitive Advantage

  11. Tricorn Companies Continue To Deliver Competitive Advantage and Win New Business By: Leveraging our core strengths Developing new production techniques Reducing total cost Enhancing the value of our customers’ products

  12. Business Review

  13. Energy & Utilities Division • Sales up 11% on previous year • Operating profit margins further improved • Tube bending capabilities extended • Investment in 3D CAD for rapid prototyping and fixture development • Engineering team expanded

  14. Transportation Division • Sales up 21% on previous year • Operating profit margin further improved • PBT up 28% • Expanding product offering • Electronic fixtures have provided further opportunities for growth

  15. Aerospace Division • Sales up 8% on previous year • Business returned to profit in H2 and for the full year • Operational performance significantly improved under strengthened management team • New business secured • Growth prospects encouraging

  16. China Expansion • Part of strategic development in South-East Asia • Utilises our well established supply base and resources in China • Customer led: supports our customers in their localisation of supply • Signed letter of intent with major customer

  17. China Expansion • Plan announced early March 2012 • Company registration complete • Installation of plant and equipment will commence shortly • General Manager appointed

  18. China Expansion

  19. China Expansion • Initial investment (c. £1m) funded directly from balance sheet • Facility to be operational by end of 2012 and earnings enhancing in 2014 • Focussed on: • Supplying customers operating in the region • Developing business with new customers • Significant opportunity for growth

  20. Outlook • Aligned with major global OEM’s • Expansion of manufacturing to service growing markets of South-East Asia • Very optimistic about mid-term growth opportunities • Confident of making further progress in the current year.

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